calculated based on this amount. Basic usually depends on your grade within the company’s salary structure. Many deductions are also dependent on the basic – for example‚ your contribution (and the matching component by your employer) to provident fund is 12% of your basic. It is taxable. Dearness Allowance (DA) The Dearness Allowance is paid out to compensate for increase in the general cost of living due to inflation. DA is paid out every month. It is a taxable component of your salary. Incentive
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THE FINANCIAL SYSTEM – NATURE‚ EVOLUTION AND STRUCTURE A financial system is an integral part of a modern economy. An effective system of payment for goods and services enables huge production and the specialization of labor in the economy. The word „system‟ means an ordered‚ organized and comprehensive assemblage of facts‚ principles or components relating to a particular field and working for a specified purpose. But the word system in the term „financial system‟ represents a set of closely held
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that she wants to invest in an index fund tied to S&P stocks and in an Internet stock fund. However‚ she is very concerned about the volatile of Internet stocks. Therefore‚ she wants to balance her risk to some degree. She has decided to select an index fund from Shield Securities and an Internet stock fund from Madison Funds‚ Inc. She has also decided that the proportion of the dollar amount she invests in the index fund relative to the Internet fund should be at least one-third but that
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Monkeys Pick Stocks Better than Experts? — Automatic Finances 頁1/3 Can Monkeys Pick Stocks Better than Experts? by Jason Unger We’ve spent plenty of time explaining why investing in passive‚ low-cost index funds will out-earn actively managed funds in the long-run‚ and that most fund managers can’t even outperform the indexes they’re trying to beat over time. 33 tweets retweet The underlying theme of these posts is that stock market "experts" aren’t really experts at all. They may
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sell the securities to the savers. Although the securities are sold twice‚ the two sales constitute one complete transaction in the primary market. Financial Intermediary In the Financial Intermediary method of Capital transfer savers invest funds with a intermediary‚ which then issues its own securities in exchange. Banks are one type of intermediary‚ receiving dollars from many small savers and then lending these dollars to borrowers to conduct various financial
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higher degree of specializations and variety of competences makes asset managers provide more unique trading strategies and herd less with each other. Changes in fund structure quickly find their way into the behavior of fund managers. JEL classification: G23‚ G30‚ G32 Keywords: organizational structure‚ hierarchy‚ specialization‚ mutual funds‚ performance‚ herding‚ proximity investment. 1 The Role of Organizational Structure: Between Hierarchy and Specialization Abstract: We study how
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February 9th‚ 2015 Bill Miller and Value Trust is a well-known mutual fund company that has outperformed the S&P 500 from 1991 until 2005 and this is the longest streak of mutual fund success in history. The mutual fund was the managed by William H. “Bill” Miller III who by concept was a contrarian‚ which means that his investments were focused on low price‚ high value funds. The “measure “of the industry are based on indexes and every fund is compared to the S&P 500: which is considered the most accurate
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and includes a number of index funds and actively managed mutual funds. In a defined-benefit (DB) pension plan‚ the retiree is paid a fixed amount per month upon retirement. That amount is calculated based on a formula that takes into account the employee’s past earnings‚ age and tenure. In this system‚ the employer assumes the risk while employee bear no risk. Funding comes from both employees and employers‚ and the fund can be managed internally or by an external fund manager‚ or a combination of
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accumulate funds for future use require well-functioning financial markets and institutions. Over the past few decades‚ changing technology and improving communications have increased cross-border transactions and expanded the scope and efficiency of the global financial system. Companies routinely raise funds throughout the world to finance projects all around the globe. Likewise‚ with the click of a mouse an individual investor in Nebraska can deposit funds in a European bank or purchase a mutual fund
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||Get out of the game. Successful investing requires time and attention. If you don’t have the time to devote to it‚ you shouldn’t do it. ||B.||Invest in last year’s best-performing mutual fund.||C.||Invest in an index fund or ETF that tracks the entire stock market. ||D.||Invest in bond funds and other stable-value funds.|||3) When choosing a financial advisor‚ you should look for one who is interested in meeting with||A.||the head of the family or the person making the financial decisions||B.||you
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